Interesting day in the world of currency trading. Markets are really undecided about next move. Most currencies woke up after Memorial Day with some enthusiasm, but that was not to last. Reversal were sharp and came fast. So, pairs that had shown signs of life are now right back where they started the day. Some didn’t get anywhere to begin with, like EUR-GBP. Exceptions are Australian Dollar and New Zealand Dollar. Both of them staged rallies over last few hours, but even these are slowing down now, after returning to levels from very early in the day. Once the daily bars, or candles, close, we’ll likely have no new clues about next moves.
My USD-CHF trade suggested yesterday, didn’t work out as planned, because of the way currencies moved today. It wasn’t a total waste. Some premises of my set up held water. For example, waiting to just before European session started, kept me away from a false breakout.

My entry happened at 1.0883. First spike up was not taken, happened to early in a day, as stated yesterday. Few hours into the trade price stalled at 100 SMA and started to reverse. I closed the trade for a 10 pips gain.
Here is a chart of EUR-GBP, one of the pairs that gave hardly a sign of life today.

Long term chart suggest price to drift lower over time, but hard to find a spot to get into a trade. This is just an example for this time frame. I’m not going to be forcing trades, but wait until situations to my liking develop. Hopefully not too long. In the next post I’ll review short term long trades in GBP-JPY, the simple breakouts I try to catch almost every day. By this time tomorrow, there should be a few interesting set ups on time frames suitable for this blog.

Mike K.